** The Illinois Economic Development for a Growing Economy (EDGE) Tax Credit Program is currently operating under a 4-month extension, expiring at the end of April 2017.  Companies actively considering investments in Illinois will want to track related developments closely.  Please contact our Chicago office for additional information: 312-924-2490.
GRANTS

Large Business Development Program (LBDP): Discretionary grants are available for major expansion or relocation projects that create and/or retain a large number of jobs. The funds may be used for bondable business activities, including financing the purchase of land or buildings, building construction or renovation, and certain types of machinery and equipment.  Businesses relocating to Illinois from out-of-state must create at least 500 jobs to qualify for the program. This program also provides long term fixed-rate low-interest loans.

TAX CREDITS

Economic Development for a Growing Economy (EDGE): Provides non-refundable annual tax credits against corporate income taxes over a period of up to 10 years. EDGE credits are equal to a percentage of the new income tax withholdings generated by new job creation. To qualify, a company must make an investment of at least $5 million in capital improvements and create a minimum of 25 new full-time jobs. Businesses with fewer than 100 employees must invest at least $1 million and create a minimum of 5 new full- time jobs.  

High Impact Business (HIB): To stimulate large-scale economic development projects outside of Enterprise Zone locations, the HIB program offers investment tax credits, a state sales tax exemption on building materials, an exemption from state sales tax on utilities, and a state sales tax exemption on purchases of personal property used or consumed in the manufacturing process or in the operation of a pollution control facility. Qualifying businesses must make a minimum capital investment of $12 million and create at least 500 full-time jobs. 

Illinois Film Production Services Tax Credit Program: TV and film producers who spend at least $100,000 on Illinois goods and services, and TV commercial producers must spend at least $50,000, are provided a 30% tax credit; a 30% credit is also applicable to wages of up to $100,000 for workers who have Illinois drivers’ licenses or state IDs before filming starts, and an additional 15% is offered to producers who hire Illinois residents from high unemployment communities.

SPECIAL ZONING

Enterprise Zone Program: Businesses locating in one of state’s 49 dedicated Enterprise Zones may qualify for certain incentives including a sales tax exemption, an investment tax credit of .5% of qualified property, a state utility tax exemption on gas, electricity and telecommunication, as well as other incentives.  This program will become effective January 1, 2016.

JOB TRAINING

Employer Training Investment Program (ETIP):  The state can provide reimbursable grants of up to $500 for each new full-time job created. 

TAX EXEMPTIONS

Property tax exemptions: All personal property of businesses; inventories, machinery, and intangibles are exempt.

 

Last reviewed: September 2016


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490